Morgan Stanley Cuts Sonic Automotive (NYSE:SAH) Price Target to $57.00

Sonic Automotive (NYSE:SAH) had its price target decreased by Morgan Stanley from $72.00 to $57.00 in a report published on Monday, Marketbeat Ratings reports. Morgan Stanley currently has an underweight rating on the stock.

SAH has been the subject of several other research reports. Citigroup lifted their price objective on Sonic Automotive from $95.00 to $115.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Weiss Ratings lowered shares of Sonic Automotive from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 16th. Needham & Company LLC raised their target price on shares of Sonic Automotive from $90.00 to $139.00 and gave the company a “buy” rating in a report on Friday, July 31st. Seaport Research Partners downgraded shares of Sonic Automotive from a “buy” rating to a “neutral” rating and lifted their price target for the stock from $185.00 to $205.00 in a research note on Friday, July 17th. Finally, UBS Group boosted their price target on shares of Sonic Automotive from $90.00 to $109.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Sonic Automotive presently has a consensus rating of “Hold” and an average price target of $90.12.

Sonic Automotive Stock Down 0.8%

Sonic Automotive stock opened at $60.52 on Monday. The firm has a market capitalization of $1.91 billion, a P/E ratio of 9.65, a P/E/G ratio of 0.98 and a beta of 0.92. The company has a current ratio of 1.01, a quick ratio of 0.25 and a debt-to-equity ratio of 1.88. Sonic Automotive has a twelve month low of $54.11 and a twelve month high of $113.67. The stock’s fifty day simple moving average is $75.04 and its 200-day simple moving average is $78.21.

Sonic Automotive (NYSE:SAH) last released its earnings results on Thursday, July 30th. The company reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.75 by $0.07. Sonic Automotive had a return on equity of 20.75% and a net margin of 1.37%.The firm had revenue of $3.93 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same period last year, the business posted $2.19 earnings per share. Sonic Automotive’s revenue was up 7.6% compared to the same quarter last year. As a group, equities analysts expect that Sonic Automotive will post 6.9 earnings per share for the current fiscal year.

Sonic Automotive Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $0.41 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.64 dividend on an annualized basis and a yield of 2.7%. Sonic Automotive’s dividend payout ratio (DPR) is presently 26.16%.

Insider Buying and Selling at Sonic Automotive

In related news, major shareholder Paul P. Rusnak bought 1,119 shares of the stock in a transaction dated Tuesday, October 6th. The stock was acquired at an average price of $59.90 per share, for a total transaction of $67,028.10. Following the acquisition, the insider owned 5,150,520 shares in the company, valued at approximately $308,516,148. This represents a 0.02% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In the last ninety days, insiders have purchased 50,520 shares of company stock worth $3,013,604. 43.68% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sonic Automotive

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP boosted its stake in Sonic Automotive by 3.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,313,857 shares of the company’s stock valued at $90,088,000 after acquiring an additional 48,599 shares in the last quarter. BNP Paribas Financial Markets increased its position in shares of Sonic Automotive by 70.8% during the fourth quarter. BNP Paribas Financial Markets now owns 181,189 shares of the company’s stock worth $11,208,000 after purchasing an additional 75,125 shares in the last quarter. Empowered Funds LLC increased its position in shares of Sonic Automotive by 64.4% during the first quarter. Empowered Funds LLC now owns 131,302 shares of the company’s stock worth $9,003,000 after purchasing an additional 51,420 shares in the last quarter. Heartland Advisors Inc. purchased a new stake in shares of Sonic Automotive in the 1st quarter valued at about $8,450,000. Finally, Renaissance Technologies LLC lifted its holdings in shares of Sonic Automotive by 11.5% in the 1st quarter. Renaissance Technologies LLC now owns 88,126 shares of the company’s stock valued at $6,043,000 after purchasing an additional 9,100 shares during the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Sonic Automotive

Here are the key news stories impacting Sonic Automotive this week:

• Positive Sentiment: Major shareholder Paul P. Rusnak purchased a combined 50,520 shares for approximately $3.01 million in transactions on October 1, 5, and 6. The purchases modestly increased his already sizable stake and may signal confidence that the recent weakness has created value. SEC insider transaction filing
• Positive Sentiment: UBS lowered its price target to $74 from $107 but maintained a “Buy” rating, indicating that the firm still sees upside after the stock’s decline. UBS price target update
• Neutral Sentiment: Sonic Automotive will release third-quarter 2026 results before the market opens on October 29, followed by a management conference call. Investors are likely to focus on dealership demand, used-vehicle trends, margins, and guidance. Sonic Automotive earnings announcement
• Neutral Sentiment: Barclays retained its “Hold” rating, while broader sell-side coverage remains mixed. The lack of consensus may limit buying interest until the upcoming earnings report provides greater clarity. Barclays rating
• Negative Sentiment: JPMorgan cut its price target from $72 to $64 and assigned an “Underweight” rating, signaling concern about Sonic Automotive’s valuation or operating outlook. JPMorgan price target reduction
• Negative Sentiment: The sharp target reductions from UBS and JPMorgan reinforce concerns about the auto-retailing environment and contribute to the downward pressure on SAH, despite the insider purchases.

Sonic Automotive Company Profile

Sonic Automotive, Inc is an automotive retailer headquartered in Charlotte, North Carolina. The company operates franchised dealerships that sell new and used cars and light trucks from a range of manufacturers, along with related automotive products and services.

Its dealership operations provide vehicle financing and insurance products, parts and maintenance services, collision repair, and other after-sales support. Sonic Automotive also operates EchoPark Automotive, a used-vehicle retail business focused on providing a broad selection of pre-owned vehicles and related services.

Founded in 1997 by automotive entrepreneur O.